ASIA CREDIT CLOSE: Credits rally with Road King in focus

One of the top movers was Road King Infrastructure, whose perpetual bonds shot up as high as 102.625 after issuing at par on Monday.

Orders went over US$5.5bn for a US$300m print. The fixed-for-life perpetuals were the first such structure for a high-yield issuer in Asia.

Investment-grade credits also had a very strong day. The iTraxx Asia ex-Japan investment grade was close to 5bp tighter by the early afternoon, before moving closer to 3.5bp tighter towards the end of the session.

Constituent CDS such as Hyundai and Bank of China were about 6bp tighter.

In high yield, yields on Future Land’s recent 2020 bonds were about 5bp tighter, while Indonesian property developer Pakuwon’s 7-year non-call four bonds were about 2bp tighter.

Sovereigns saw a fair amount of constructive movement, particularly on the shorter-dated side. Spreads on Indonesia’s 2022s were about 5bp tighter, while its 2027s came in about 3bp. South Korea’s 2027s tightened 4bp.

Longer-dated sovereigns were somewhat mixed. Yields on the Philippines’ 2042s were 1bp tighter, while Indonesia’s 2047s were 5bp tighter.